Pioneering cost reduction of cross‑border remittances through mobile wallets in The Gambia
Budget:
- Total:
- IFAD:
- Stanbic Bank:
- EUR 440,000
- EUR 300,000
- EUR 140,000
Sector:
- Private
Duration:
- 2022 ~ 2024
Implemented By:
Program:
Project Category:
- Diaspora Investments Projects
Target Groups:
- 17,000 remittance receivers
- 17,000 remittance senders
Pioneering cost reduction of cross‑border remittances through mobile wallets in The Gambia
Budget:
- Total:EUR 440,000
- IFAD: EUR 300,000
- Stanbic Bank: EUR 140,000
Sector:
- Private
Duration:
- 2022 ~ 2024
Implemented By:
Target Groups:
- 17,000 remittance receivers.
- 17,000 remittance senders.
Program:
Project Category:
- Remittance Project
Project Goal
To enhance the financial resilience and economic empowerment of remittance families through cost‑effective, digitalized remittance flows and financial inclusion innovations.
Implementing Partner
QMoney Financial Services Ltd is a subsidiary of QCell, the latest mobile network operator to enter the Gambian telecommunication market. In 2020, QMoney became the first mobile money company in The Gambia authorized to terminate international remittances into e-wallets.
GEOGRAPHIC TARGET
The Gambia, mostly rural areas outside Greater Banjul, and its corridors from Germany, Italy, Spain and Sweden.
Project Objectives
Cost Reduction
Contribute to reducing international remittance transfer costs to The Gambia, and increase access to and use of transparent and gender‑responsive low‑cost services
Digitalization
Accelerate the use of digital products and strengthen the digital payments ecosystem to facilitate international remittance transfers to The Gambia
Financial Inclusion
Leverage international remittances to The Gambia to enhance financial inclusion and resilience of senders and recipients
Formalization
Promote greater access and use of formal international remittance transfers to The Gambia
Project Description
IFAD is partnering with QMoney under the PRIME Africa initiative to expand access to The Gambia’s first ever mobile wallet for international remittances among low-income rural remittance families. The project will promote access to affordable and convenient remittances, as well as to all other financial and non-financial services already offered through the digital wallet, particularly in rural areas.
Project Activities
Beyond its existing partnership with Ria, QMoney will identify and set up strategic partnerships with international money transfer operators to offer competitive prices to Gambian migrants abroad.
Technological innovations will enable QMoney to integrate with new market players, allowing more operators to terminate international remittances directly into its mobile wallet. This will translate into greater choice for low-income customers through increased competition and new services.
Through dedicated market research and proprietary telecom data, the project will identify high migration rural areas from The Gambia to European Union countries with low access points. This will enable a sustainable agent network expansion strategy, resulting in 100 new QMoney agents with seamless cash-in/cash out services for rural dwellers.
A financial literacy campaign across the country will include customized content on international remittances, as well as digital financial services. This training is strategically aligned to the Financial Capability and Empowerment enabler of the National Financial Inclusion Strategy implemented by the Central Bank of The Gambia, whereby beneficiaries can access knowledge and make informed decisions about the use of financial services.
Earmarked remittance products have an added value for senders, as they allow remittances to be sent for specific purposes, such as medical services or food supplies. As these products are not yet available in the Gambian market, the project will undertake customer centric market research required to design these high-impact and innovative products.
Expected Results
Supporting Sustainable Development Goals
- 17,000 Gambian migrants in Germany, Italy, Spain and Sweden can opt to terminate their remittances into a mobile wallet.
- Gambian migrants in Germany, Italy, Spain and Sweden can shift from cash-based transactions to digital remittances at a 30 per cent lower cost
- 17,000 new recipients in rural areas can open mobile wallets to receive remittances from abroad, and have access to all other digital financial products linked to the wallet.
- 9,600 remittance recipients are trained in financial literacy
Supporting Sustainable Development Goals
